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Steering the transition from informal to formal service provision: labor platforms in emerging-market countries
In: Socio-economic review, Band 19, Heft 4, S. 1315-1344
ISSN: 1475-147X
Abstract
Services that are especially suited to being offered via online labor platforms, such as cleaning, driving and tutoring, are frequently performed in an informal way, especially in emerging-market countries. The informal economy is thus important for recruiting workers for labor platforms. Platform use, however, requires formal service provision, which workers in the informal economy often resist. Thus, labor platforms have to promote workers' transition from informal to formal service provision. While recent studies have hinted at labor platforms' fostering of formal economic activity, we know little about how such intermediation unfolds. We use a process lens and comprehensive qualitative data on labor platforms in Panama and Mexico to study how labor platforms steer workers to formal service provision. Detailing the interactive process of workers transitioning to formal service provision as triggered by labor platforms, we add to platform research and literature on intermediation between informal and formal economic activity.
(No) Time for Change: When and Why Entrepreneurs Act During Underperforming Fundraising Attempts
In: Organization science
ISSN: 1526-5455
Entrepreneurs need to mobilize funds, but they do so under considerable uncertainty about resource holders' preferences, leading often to fundraising attempts that perform below entrepreneurs' aspirations. Past research has offered contrasting theorizing and evidence for why entrepreneurs then make changes to their product offering during such attempts as well as for why entrepreneurs refrain from taking such action. This paper develops and tests behavioral theory to reconcile this tension, explicating when and why entrepreneurs change their product offering during underperforming fundraising attempts. Specifically, we argue that entrepreneurs draw on three sources of information that are inherent to fundraising attempts and that inform the extent of their actions to change their product offering: the degree to which they perform below their own fundraising aspirations, the degree to which they fall below peer fundraising performance, and the time that remains until the deadline for the fundraising attempt. Longitudinal data on 576 fundraising campaigns (6,758 observations) published on the crowdfunding platform Kickstarter support our theory. By developing novel behavioral theory on when and why entrepreneurs take action during resource mobilization, we offer contributions to research on entrepreneurial resource mobilization, the crowdfunding literature, and the Behavioral Theory of the Firm. Funding: This work was supported by KölnAlumni. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2020.13803 .